New $68m Shopping Mall for Abuja

An artist's impression of Novare Gateway Mall in Nigeria's capital city of Abuja, scheduled to open during the third quarter of 2017.

Abuja — Construction has began in Nigeria's capital city of Abuja on a new $68 million shopping centre, Novare Gateway Mall, scheduled to open during the third quarter of 2017.

Developed by Novare Real Estate Africa, the total size of the mall will be approximately 25 000m2. The development will be phased with an initial stage of 15 278m2.

The total cost for the first phase is forecast to be $68 million.

Speaking at the ground-breaking ceremony held recently, the Nigerian Minister of Federal Capital Territory (FCT) Alhaji Mohammed Bello said his administration would give all the support needed to make projects like Novare Gateway successful as they serve citizens, create employment and generate multiplier economic activities.

He also commended Novare Gateway for partnering with the Abuja Chamber of Commerce in executing the project by leveraging on local expertise, local information and local content.

Commenting on the project, Jan van Zyl, head of property development in Nigeria for Novare Real Estate Africa, “its modern infrastructure and facilities, mean that the shopping centre is perfectly situated to meet the needs of the growing Abuja community.

According to the latest PWC African Retail report, Abuja is set to experience a growth rate of 171% in terms of its population size up to 2030 – one of the highest figures on the continent.

With Shoprite as the anchor, the centre is located on the main 10-lane highway between Abuja's Nnamdi Azikiwe International Airport, named after Nigeria's first president, and the central business district.

Other malls in Abuja forming part of the Novare Real Estate Africa portfolio include the 8 267m2 Novare Apo mall, which is located approximately 18 km away from Novare Gateway to the south-east of Abuja. In the north, the 12 508m2 Novare Central, a mixed use centre consisting of retail space and A-grade offices, is also in progress. In Lagos, the 22 000m2 Novare Lekki mall, which is expected to commence trading in the middle of 2016.

Nigeria’s property market slumps amid fiscal strains, low yields

Meanwhile Nigeria’s property market appears to have defiled all known predictions. Prior to 2016, experts in the industry had predicted that the year would afford investors the opportunity to acquire property at low prices.

It was further predicted that with the emergence of a new administration, the industry would witness large volume of activities, even as experts predicted high returns on investments in this fiscal year.

But contrary to the predictions, the industry appears to be witnessing low returns on investments as the sector is in serious lull. Already, the nation’s real estate market is dwindling, almost ten months, after the inauguration of this administration.

Experts said that the sector might witness proliferation of markets as several properties would be up for grab, thus making prices of properties to crash, as much cash would be available for few properties. Ironically, investors said there is no money to buy property, complaining of low cash flow.

According to a property investor, Mr Funso Olufemi, “Apart from those, who may acquire properties for the near future, this year may not be better year, as there is serious cash squeeze in the market’’. According to him, those investing in the market should wait for some time to see how foreign exchange market would impact on the sector, saying, as it stands now, there is no immediate hope for the investors.

However, he said, the gains might come in the nearest future, when the issue of foreign exchange would be sorted out by government. Olufemi said investors are not keen to invest in the market due to the dwindling economy, just as he noted that sellers are not even bringing their property to the market, as they are yet to ascertain the economic direction of this present government.